The government order says that his conduct was “unbecoming of a Government Servant” and had caused “embarrassment to the Government,” prompting disciplinary action under the All India Services (Conduct) Rules, 1968.

Rao, father of actor Ranya Rao who was arrested in March 2025 for gold smuggling from Dubai, rejected the allegations outright, insisting the video was fake and that he had no knowledge of its origin. Rao said that the clip circulating online was not genuine and were generated using Artificial Intelligence (AI). 

The suspension comes months after Rao was reinstated in August last year. Rao had been sent on compulsory leave following the arrest of his stepdaughter, actor Ranya Rao, in gold smuggling case.